Computer parts company appears to be closing; 100+ jobs in jeopardy

TOWN OF ULSTER -- TechCity tenant Partsearch, which employs more than 100 people, could be closing after losing its largest client, some employees say.

County officials say they are trying to confirm the company's plans and see if there is anything they can do to help.

Five or six employees of Partsearch sought help on Monday from Ulster County's free Onestop service for dislocated workers, and they told county officials the company was ending operations, according to Nancy Schaef, director of the Ulster County Office of Employment and Training.

Ed Lorentz, a salesperson and customer service representative for Partsearch, said he went to work for two hours on Monday and then was told to go home. He said he was told management would hold a meeting later that night about the state of the company, but he then heard the meeting was canceled.

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On Tuesday, Lorentz said, employees were given their final paychecks, with any accrued vacation pay, and were sent home.

Lorentz said the company's human resources department told him to go ahead and look for another job but that he was not technically fired.

"They weren't sure (if the company is permanently closing) but said it's not looking good," said Lorentz, who described the current economy as "probably the worst timing" to lose his job. "It sucks, but I guess it's time to move on."

Lorentz said he was expecting a clarification from the company on Tuesday but got no call. He said that unless he hears things have changed, he will not go back to work today.

Lorentz estimated 150 to 200 people worked for Partsearch at TechCity, though another employee said 130 people worked at TechCity and another 70 worked at the company's New York City headquarters.

Lorentz said home electronics retailer Best Buy terminated its contract with Partsearch on Friday, costing the local operation more than half its business.

The second Partsearch employee, who spoke on condition of anonymity after signing a nondisclosure agreement, said Partsearch got 60 percent of its revenue from supplying Best Buy with materials like laptop computer batteries and chargers.

The employee said a Best Buy internal audit found Partsearch had been overbilling the retail chain and demanded Partsearch pay Best Buy back.

The dispute led to Best Buy dropping Partsearch as a supplier, crippling the company, according to the employee.

Partsearch's local phone number had been disconnected by Monday, and the company's website was down.

Partsearch officials at the company's headquarters did not return a reporter's phone message on Monday, and no one answered the phone at headquarters on Tuesday.

Dan Wieneke, president of TechCity, the former IBM-Kingston plant, said Monday afternoon that he was in contact with Partsearch's corporate office and that company officials indicated to him it was "business as usual." He also said he saw people still working at Partsearch's TechCity site Monday afternoon.

As of late Tuesday afternoon, the company had not filed a notification that is mandated when a business with more than 50 employees shuts down, according to state Department of Labor spokesman Joe Morrissey.

Lance Matteson, chief executive officer of the Ulster County Industrial Development Agency, said his agency was "trying to engage with the company" and provide any help it can. He said "there is a situation" at the company that still is "in flux."

March Gallagher, the deputy Ulster County executive who oversees economic development, said she had heard reports that Partsearch was closing but had been unable to reach anyone at the company as of Tuesday afternoon.

Gallagher said County Executive Michael Hein would offer any possible assistance to help Partsearch keep operating.